Britton Marine, a Sydney-based exporter specialising in the supply of tactical response vessels to military and law enforcement agencies, has secured additional funding to help it fulfil a US Army contract to supply and install new boat engines for Iraq’s Coastal Border Guard in Basra.
Export Finance and Insurance Corporation (EFIC) has provided a working capital guarantee to Britton Marine’s bank, Westpac, to enable the bank to lend additional working capital funds to the exporter.
EFIC’s guarantee, known as EFIC Headway, enables eligible small and medium-sized exporters like Britton Marine to access additional working capital from their bank, without requiring further security.
“Up until now our export markets have been closer to home, in New Zealand, Singapore, Indonesia and Solomon Islands,” said Britton Marine’s managing director, Steve Britton.
“This is our first major contract with the US military, and our first in the Middle East.”
Britton Marine is supplying and installing eight diesel engines and stern-drive systems on four logistics support boats. The installations will occur on site in Basra, in southern Iraq.
“Our engine supplier required payment prior to shipment to Iraq, placing pressure on our cash flow. EFIC’s working capital guarantee helped us secure the additional working capital we needed to deliver the contract on time,” said Britton.
Angus Armour, EFIC’s managing director, said EFIC is excited to help the company break into a new export market in the Middle East.
“Through the EFIC Headway working capital guarantee, EFIC works with Australia’s leading banks to help SME exporters overcome working capital shortfalls and achieve further international success,” said Armour.
EFIC provides facilities in support of defence-related exports only if all Australian Government requirements for the proposed exports are met.